Page 65 - RusRPTMar20

8.1.4 ​Banks specific issues
Russia’s financial sector is dominated by banks, in particular those that are state-controlled. ​The share of foreign-owned banks is relatively small—at around 6.5% of total assets of top banks—with that of US banks almost negligible. Nonetheless, foreign institutions have traditionally been the key providers of banking services to global corporates. The imposition of sanctions on sovereign debt beyond the primary market would likely increase the dominance of domestic state-controlled banks. At the extreme, foreign institutions could be forced to exit the market, as operations without access to OFZ for liquidity management as well as regulatory compliance, and without the ability to hold correspondent accounts with the CBR, would make a presence in Russia untenable for most foreign banks.
65​ RUSSIA Country Report​ March 2020 ​ ​www.intellinews.com